After finally getting an approved short sale, now we have found out that the area the house is located has been labeled a "declining market" and the buyers now need not 5% down but 10%. They have the 5% and have no other seasoned sources.
Any ideas where to get the additional 5%?
Need answers fast!!!!!!
We have to close by 3/10/08!!!
Looks like you may be out of luck. I have seen this happen and a lot of deals go sour because of it.
You might look at the sales price and the appraisal. There might be some room there.
Hi Vangie: Do the buyers have a 401K? I know you can tap into it if this is your first home.
What about the gift program- does the lender allow this- check out Ameridream or Nehemiah program.
The buyers have hit their 401K and Thrift Savings Plans, and because this is a Jumbo loan, Ameridream and the likes are out.
Isn't this declining market category sort of like REDLINING.
Vangie,
I see you have gotten what I could contribute.....I hope it happens for you.
Vangie-Hope you were able to come up with a plan B. I've seen this happen out here. It's a fine balancing act. You don't want to pay for the appraisal until you have short sale approval. But by the time you get approval from the bank(s) you're almost at the end of the escrow! Then what, try to go back to the banks and ask them to reduce the loan amount again? HA! The other problem you have to look at-Is the buyer still paying too much for the property? Depends, if this is their dream home and they plan on staying 10 plus years in order for market values to pick up, then maybe yes! But if they are planning on selling in the next 2 years (for any reason-job transfer, illness, etc.) they may not be able to re-coup their down payment! "Welcome to My World!" Diana
The answer is simple. Go FHA. Most real estate markets have increased the price limits for FHA. In fact, in Sacramento, where jumbo loans are anything above $417,000, FHA loans go to $580,000. You can thank me later.
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